Government increases existential minimum from BRL 303 to BRL 600

Lula government

Amount is a slice of income that cannot be charged on payroll loans

Brasilia DF) – President Luiz Inácio Lula da Silva increased the value of the existential minimum from BRL 303 to BRL 600, which is the portion of the citizen’s income that cannot be charged on payroll loans or blocked by financial institutions. The initiative seeks to protect consumers who face cases of over-indebtedness and corresponds to the amount needed to pay basic expenses, such as water and electricity.

Published this Tuesday (20th) in the Official Gazette of the Union, the decree with the change also determines that the National Consumer Secretariat of the Ministry of Justice and Public Security periodically organize joint efforts to renegotiate debts and “for the prevention and treatment of over-indebtedness due to consumer debt”.

“This initiative is part of a series of efforts by our government to guarantee credit and consumption conditions for the Brazilian people, contributing to the heating up of the economy”,

wrote Lula, in a publication on social networks.

At the beginning of the month, the government launched the Desenrola program to facilitate the payment of debts of up to R$5,000. About 70 million Brazilians who are in default can benefit.

The debts of families with income of up to two minimum wages (R$ 2,640) that have been contracted by the debtors until the end of 2022 will be included. Starting next month, the government will hold auctions so that creditors can buy the credits, offering debtor discounts. In exchange for participating in the negotiation, the creditor company will be guaranteed by the National Treasury if the debtor is unable to honor its commitments.

Any creditor wishing to participate in Desenrola must pay outstanding debts in the amount of up to R$100. According to calculations by the Ministry of Finance, around 1.5 million Brazilians are in this situation and may have their name cleared if institutions join the program.

*With information from Agência Brasil

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